DFD Diagram

DFD Diagram

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Professor

Institution

Course

Date

Supply chain management

Introduction

DFD also known as data flow diagram is a design used in the representation of data in an organization, company, or any other work or group in the society. This program deploys the use of graphs to outline or represent the inventory movement throughout an organization or company. It relieves the organization from unnecessary expenditure since it gives out detailed information about each response individual or personnel in the inventory system line. This line ranges from the purchaser to the corporate paperwork department or section of the organization. DFD or data flow diagram enables the management keep track of all the organization’s business activities (Smock et al, 2007). Despite its known disadvantages, this program is vital for the positive progress of any business organization or company. For instance, the diagram ensures that no activities running under the organization misses from the track or watch list of the administration or the human resource department of the organization or the company. This prevents misuse of the company’s resources or overspending on one area at the expense of other vital areas of concern among others. Examples of areas or organizations, which deploy the use of DFD, include management of logistics companies and management of warehouses. This work focuses in supply chain management of a warehouse (Pooler et al, 2004).

Advantages and Disadvantages of Data Flow Diagram of Supply Chain Management

Advantages

Representation of data of a flow diagram plays vital functions for the organization. However, smaller organizations realize these advantages more than their bigger counterparts do experience the same. Some of the advantages creating a usable report, data flow diagram enables the human resource department and other employees of the organizations to create a usable report. Because the flow diagram relays information in an organized way, employs of the organization find it simple to come up with a usable and sensible report. This makes their tasks easy since they do not need to face a complex way when creating or making their report. Reduces cost with lean techniques in talent management for small and medium size businesses. A well-organized flow diagram ensures that the organization does not overspend in management maters within the organization. It ensures the fulfillment of this experience by outline the required and proper structure for the organization administration to follow. It also maximizes the realization of profits in the organization since it provides the right way for running the organization and cuts the cost of running and managing the organization. Flow diagram answers three vital for the management and administration of an organization. These questions are what are ordered, who ordered it, and its arrival time. The late or early arrival of the item may determine lose or profit the organization may experience upon the results. Having an organized and effective flow chat diagram answers these three vital questions in any organization (Stolle, 2008). It tracks information from one point to the next in an organized and simple way understandable to all the concerned parties. Using a flow diagram ensures the fulfillment services since the diagram makes it easy for the personnel to monitor all the processes. Information in the data flow diagram is deployable in tracking the company’s emails, cash flows, receipts, outputs and all the other factors in the supply chain management. This gives the management a good flow of information of the events taking place within the organization at any given time since all the record are kept in place. The finance department of any organization is the most sensitive and crucial department in an organization. It is the fuel and the backbone of any organization hence it requires serious scrutiny and checking at all times. To prevent theft that may include cash or the company’s information, any organization requires a well-organized flow chart diagram to curd such ill-fated actions. This process also requires the installation of certain software and machines. These include the following examples of machine or gadgets energy-efficient servers, such as Sun Microsystems Inc.’s Sun Fire/ SPARC Enterprise T1000 and T2000 boxes or Dell’s Energy Smart Power Edge servers (Moser, 2006).

Disadvantages

This management strategy requires trained personnel to run and manage. Coming up with an effective flow diagram requires the services and operation of an individual with the right skills for creating the pattern. This pattern ensures that the organization realizes their full potential resulting into maximized profits. In most cases, many organizations do not realize their full potential since they do not have experts within their organization running the flow diagram program. This is the reason most organization experience lose of their funds since they follow complex ways that require additional funds (Moser, 2006).

How to Create a Data Flow Diagram for supply chain management

When creating a data flow diagram, there are four main symbols one ought to put into consideration. Squares represent source of data usually referred to as external entities. Rounded rectangles symbolize a process, an agent that uses data in the flow diagram. Open-ended rectangles are used as storage centers. These centers may include databases, filling cabinets, or paper documents within the given organization. The arrows between the objects represent the flow of data or information, data source, and storage between processes within the organization (Trent, 2007).

Conclusion

From the research work, it is evident that having a well-organized data flow diagram is vital and important for all the organizations. It gives an organization the advantage to fulfill its full potential hence making maximum profit. It also cuts the cost of management of the organization since it outlines the all the process and flow of data within the organization. This ability to keep all the records of events taking place within the organization help in avoiding or curbing ill vices such misuse and theft of the organization’s resources by the employees. The data flow diagrams do not only assist the organization in realizing profits, it also makes the employs work or tasks simple. After certain period employees within any organization need to create a detailed report as requested by the organization data flow chart makes this simple for the employees. Despite the data flow diagram giving small or medium sized organizations advantage over their bigger counter parts, it is still vital for the bigger organizations to install the flow diagrams. This is because the data flow diagrams prevent theft of the company’s resources, which may cripple and bring down the organization. Flow diagrams also have one major setback since they require an individual with the right skills to create. Coming up with a complex flow diagram may cost an organization dearly in terms of finances and funds as it requires more funds to run than a simple and easy to read flow diagrams.

References

Pooler, V. H., Pooler, D. J., & Farney, S. D. (2004). Global purchasing and supply management. Boston, Mass: Kluwer Academic Publishers.

Moser, R. (2006). Strategic purchasing and supply management: A strategy-based selection of suppliers. Wiesbaden: Dt. Univ.-Verl.

Trent, R. J. (2007). Strategic supply management: Creating the next source of competitive advantage. Ft. Lauderdale, FL: J. Ross Pub.

Stolle, M. A. (2008). From Purchasing to Supply Management: A Study of the Benefits and Critical Factors of Evolution to Best Practice. Wiesbaden: Betriebswirtschaftlicher Verlag Dr. Th. Gabler / GWV Fachverlage.

Smock, D. A., Rogers, S. C., & Rudzki, R. A. (2007). On-demand supply management: World class strategies, practices, and technology. Ft. Lauderdale, FL: Ross.